The Japanese yen jumped today on speculations that Chinese policy makers are going to perform monetary tightening. Such talks made traders nervous and drove them to seek safety.
China boosted the benchmark seven-day repurchase rate, reducing funds available to the banking system. The liquidity squeeze caused investors to flee from riskier assets. The MSCI Asia Pacific Index of shares fell 0.8 percent and the Stoxx Europe 600 Index went down 0.6 percent.
USD/JPY sank from 98.11 to 97.27 and EUR/JPY dropped from 135.21 to 133.84 as of 10:00 GMT today.
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